Another month comes to an end and, experiencing a major crisis, the Burson-Marsteller Public Affairs team has finalized another Monthly Newsletter, with national and international politics issues. The truck drivers' strike generated, in addition to visible disturbances to the population, a peculiar political situation, analyzed by the attentive eyes of our team. In the series "presidential candidates", the evaluated profile was the one of the pre-candidate Marina Silva, already known of great part of the population. And, in the column "RelGov in focus", it was the turn of the analysis on the multifaceted profile of the professional of Government Relations. In the current scenario, the decision of the Brazilian Supreme Court to end the privileged court and its consequences has gained prominence in the political arena. And in the international panorama, we highlight the crisis experienced by our neighbor, Argentina. In order to provide high quality analytical material, we wish you all an excellent reading!

1. Monthly
Newsletter
Burson-Marsteller
May
Public Affairs
2018

2. 02
Gov Affairs in focus | Competence and knowledge - the new
RELGOV professional
03 Politics | Presidential candidates: Marina Silva, once again
04
Politics | The strike of the truck drivers and its reflexes in the
Brazilian economy
06 Politics | Special Court: Prerogative or Privilege?
17
International Relations | The crisis in Argentina and the
possible repercussions in Brazilian territory: the phantom of
international dependence
09 Economic Data
10 Events Calendar
Burson-Marsteller l Public Affairs
An intersecting agency that, through the understanding of the political environment,
assists clients of different sectors in the protection and/or promotion of their businesses,
managing their influence in a sustainable way.
The Burson-Marsteller standard is responsible for the development of highly customized
projects, according to the needs of each client, developing strategies for various economic
sectors, especially those heavily regulated by the government.
Contributors to this edition
Index
Year 2 | Nº 05 | May
Luciana
Lemgruber
Fernanda
Xavier
Isabela
Girotto
Anna
Paula Losi
Nara
Andrade
Mikael
Victor
Leonardo
Brito

3. When seeking a professional to work with government affairs the first thing to be considered is
much more their skills than their academic qualifications, since that may be diverse in a
professional who wants to act in the relationship with the government, from political science,
international relations, law, even administration, engineering and medicine, among many others.
What a Relgov professional should never miss is an ethical sense that allows him to act in a
transparent way, not putting the company or client for whom he works in a reputational risk. If
the lobbying is not guided primarily by ethics and transparency, will sooner or later have
negative consequences for the professional.
Some skills are fundamental for those who want to work with government affairs:
communication, strategic vision, analytical capacity, decision-making, networking, flexibility,
resilience, persuasion and negotiation. We must not forget that some knowledge is also
fundamental, and it is indispensable to have a notion, preferably between intermediate and
advanced level, of legislative process, formation of public policies, political process, and tools for
mapping stakeholders and risk analysis.
A professional who does not have at least the mentioned above skills and knowledge probably
will not be able to act in a sustainable and strategic way in the defense of the interests
represented, most likely placing the institution that defends in risk, as it will use other ways,
perhaps unethical, to achieve their goals.
There is still the specific knowledge that in some sectors is more important than in others. Highly
regulated sectors, such as the health sector, require a professional who has a thorough
knowledge of the rules that govern it. Therefore, it is very common to find among the
professionals of Relgov of the pharmaceutical industry people with formation in the health area,
like pharmacists and even doctors.
It is very important to ensure that the professional hired to play the role of government affairs
has, in addition to the knowledge of the sector, the aforementioned skills, thus avoiding people
who believe that the most important is "be a friend of the king", as was formerly the case.
A well-qualified, ethical and transparent professional is the key to success in government affairs.
Anna Paula Losi
Government Affairs in focus
Competence and knowledge - the new
RELGOV professional
02

4. Marina Silva, as expected, once again confirmed her pre-candidacy for the Presidency of the
Republic. For the second time, by the REDE, which is one of the founders, Marina reaffirms her
power alternation discourse, since historically, in the last years, the Executive Branch has been
concentrated between PT and PSDB, and thus, it positions itself as a government.
She has an extensive political life, permeated by mandates of councilwoman, state deputy,
senator and Minister of the Environment. The Acre candidate has as one of its main flags, the
defense of the environment, since its historical performance with the rubber tapper leader Chico
Mendes. Marina Silva was affiliated with the PT until 2009, and then composed the PV and REDE,
the latter, her current party.
Unlike the other years that she has applied for, this year, Marina Silva has been presenting a less
extreme discourse aimed at dissociating the radicalism to which her image is referenced.
Although her government plan has not yet been presented, the former Minister of the
Environment has not shown to be totally contrary to the Labor and Social Security Reforms. In
this perspective, she explained that government spending requires strict control and, despite
criticizing the current government, the pre-candidate is a "moderate opposition" to Michel Temer.
In this regard, the environmental agenda, a topic of extreme importance for the pre-candidate,
given her role as Minister of the Environment, is also identified, this time, as moderate while
Marina does not oppose agribusiness and affirms the need of allying the economy to
sustainability.
The former senator, having seen the current scenario of the economy, has already commented
on her plan for the economy and is being assisted by economists Eduardo Giannetti da Fonseca,
Ricardo Paes de Barros and Samir Cury.
Regarding her position in relation to the PT, she expressed her support for the impeachment of
Dilma Rousseff and commented that the arrest of former President Lula reveals the beginning of
a period in which the laws are applied equally, for all. Still in this context, she defends the end of
the privileged forum.
Marina Silva was unanimously approved in her party's State Conventions, however it is perceived
a great difficulty for the former senator to build a support network for these presidential
elections. One of the reasons, would be the support of Marina in 2014, in the second round, the
candidate Aécio Neves (PSDB).
There is information that the former Minister of the Environment spoke with representatives of
the PPS, PV, PHS and PRP, however, the negotiations have not progressed. The PV and the PPS
indicated their possible support for pre-candidate Geraldo Alckmin (PSDB).
The PV, specifically, the party for which Marina launched her first candidacy for the Presidency of
the Republic, has relevant names that, individually, support the REDE Party pre-candidate, such
as Eduardo Jorge. But, it is unlikely that the PV, in general, will support Marina Silva, formally.
Politcs
Presidential candidates: Marina Silva, once
again
03

5. In the week that Michel Temer presented the two-year review of his government, Brazil was
surprised by the announcement of a strike that days later took proportions that can be reflected
far beyond the economic aspects. The protests began on Monday (21), when truckers across the
country paralyzed their deliveries and shut down highways.
The main claim of the strikers is the reduction of the price of diesel, which, according to the
Brazilian Association of Truck Drivers (Abcam), has been negotiated with the government since
October last year, but without success. During the strike, it was also questioned the change in
Petrobras' pricing policy, that changed the value of fuels indexing it to international prices.
The economic and social impacts of the strike are immense. With the blockade of the highways,
kilometers of congestion were formed, and, with the retention of the trucks that supply the fuel
stations, drivers saw gasoline and ethanol, mainly, to end quickly; where there was fuel, the
price was raised to values often absurd.
The Government was slow to react, and when it realized the losses, it was forced to yield at least
some of the demands of the strikers. On Tuesday (22), an agreement was announced between
the presidents of the House of Representatives and the Federal Senate with the government, to
reset the taxes levied on fuels. The House approved, the next day, the bill that encumbers again
the industrial sector, including the PIS/COFINS exemption on diesel oil. Also with the objective of
contributing to the end of the strike, Petrobras announced the reduction of the price of diesel by
10% in the oil refineries, for 15 days.
However, protests intensified, with even more impacts: fuel shortages were widespread, rising
food prices became more evident, as did the reduction and paralysis of air operations due to the
lack of aviation kerosene, and suspension of classes in schools and universities.
The government tried another move and held a meeting on May 24, when it signed an
agreement with some of the leaders, which foresaw: CIDE reduction on diesel by the end of
2018, a 10% discount on the diesel price in the refineries for 30 days, with readjustments only
every 30 days, revision of the freight table, exemption from toll for unladen trucks, authorization
from CONAB to hire freelance truck drivers and payroll exemption for the road freight transport
sector. However, a part of the movement did not accept the government's proposal and the
mobilization remained, with roadblocks remaining, making access to basic items even more
difficult for the population.
Politcs
The strike of the truck drivers and its reflexes
in the Brazilian economy
04
In this context, the alliances, in general, are still undefined, while the political scenario is not yet
determined. Clearly, the REDE Party has a lot of work to do, not only for political support, but
also for citizen's confidence that the pre-candidate, who won just over 20 million votes in 2014,
is ready for the elections.
Isabela Girotto

6. The government, in agreement, decided to sign Decree 9382/2018, establishing GLO (Guarantee
of Law and Order) throughout the national territory, permitting: I - the removal or driving of
vehicles obstructing the public highway; II - the escort of vehicles that provide essential services
or transport products considered essential; III - the guarantee of access to places of production
or distribution of products considered essential; and IV - the measures of protection for critical
infrastructure. Still to try to dissolve the movement, an ordinance was published by the Ministry
of Public Security authorizing the use of the National Force in support of the Federal Highway
Police, with the objective of putting an end to blockades on highways.
The situation, however, continued to worsen, generating an increase in fuel shortages in several
Brazilian cities, and, as a result, citizens faced lines for hours in the few stations that still had
gasoline and / or alcohol available. The movement gained social support, which can be explained
by the low popularity of Temer and the constant increases in the price, mainly of gasoline.
Last Sunday, the government held a new round of negotiations to end the strike, accepting most
of the demands of the leaders at the meeting, such as a reduction of R $ 0.46 per liter of diesel,
and the maintenance of this price for 60 days and with monthly adjustments. In addition, three
provisional measures were also published on the night of 27/05:
• MP 831/2018, which will allow CONAB to hire up to thirty percent of the annual
freight demand from freelance truck drivers, exempted from the bidding process;
• MP 832/2018, which establishes the Minimum Pricing Policy for Road Freight
Transport;
• MP 833/2018, which exempts freight vehicles that circulate empty on federal,
state, district, and municipal roadways from toll collection on axles that remain suspended.
After a week of the beginning of the strike, with the several concessions of the government, the
president of the Brazilian Association of Truck Drivers (ABCAM), José da Fonseca Lopes, who had
rejected the agreement on May 24, said that the government had reached to an acceptable offer,
and requested that the truckers release the highways and suspend the strike.
Although some of the leaders of the truck drivers' movement claim to be satisfied with the
government's proposals, several roads remain blocked and freight transport continues to suffer.
The main explanation for this is the weakening of the government, which has had to give way
without effective guarantees of the end of the movement, as well as the diffuse nature of the
standstill, which means that there are different leaderships that do not feel represented by the
majority groups, hindering the end of the movement.
The scenario designed by the truck drivers' strike will have direct repercussions in the October
elections. Considering the negotiations carried out, it is correct to say that the candidates will
have to present proposals that also cover aspects related to the demands of the strikers. Even
months after the protests, the claims made here will be an important indicator for the future
leadership of the Executive.
Anna Paula Losi and Fernanda Xavier
Politics
05

7. The problem of the privileged court begins with its own nickname, created for the technical term
"competent court by prerogative jurisdiction". In theory, the prerogative jurisdiction would not be
a privilege, but only a prerogative, which has as its objective the protection of the position
occupied, and the guarantee of a fair trial, without any relation with who occupies it.
It turns out that prerogative has become a privilege. And that's how the problem starts. An
endless political game involving courts and privileges began to do exactly what was not a
function of the prerogative of the court: biased and political judgments and privileges
surrounding the occupier rather than the post.
The court by prerogative jurisdiction has been constitutionally established since 1891, when the
text attributed to the Supreme Court, the power to prosecute and judge the President of the
Republic, in common crimes, and ministers of State. And, since then, the Constitutions have been
increasing the number of people entitled to the prerogative court.
Disto resultou, segundo levantamento do Núcleo de Estudos e Pesquisas da Consultoria
Legislativa do Senado Federal, nada menos do que 38,4 mil autoridades que não se submetem a
um juiz de primeira instância, mas sim a um Tribunal.
Faced with this chaotic constitutionally constructed scenario, the Plenary of the Federal Supreme
Court decided on May 3 to restrict the scope of the court by prerogative jurisdiction. The vote of
Minister Barroso determined that "(i) The court by prerogative jurisdiction applies only to crimes
committed during the exercise of the position and related to the functions performed; and (ii)
after the end of the procedural instruction, with the publication of the order of subpoena for the
presentation of final allegations, the jurisdiction to prosecute and judge will not be affected any
more because the public agent comes to occupy another position or leave the position he held,
whatever the reason." With the rapporteur, they followed six more ministers, guaranteeing the
change of the jurisprudential understanding.
Although the decision does not require the binding of new decisions, the neighbors of the Three
Powers Square may begin to worry about the changes imposed, since the tendency is for similar
case judgments to follow the Supreme Court, despite doubts that certainly will arise.
If on the one hand the political game of positions with a single purpose of hiding people and
crimes behind offices, begins to shake; on the other hand, the case can generate time for the
politicians included in the Clean Record Act (Conditions of Ineligibility Act).
According to the mentioned law, the politician becomes ineligible after being convicted by a
collegiate judge, which occurred immediately in the first trial of those who had a privileged court.
That is, in the case against a parliamentarian, if condemned by the Supreme Court collegiate, the
politician could be automatically prevented from disputing the following lawsuit. If the case is
referred back to the first instance because of the decision restricting the court, it should be tried
first and second instance, according to the ordinary rite, and it will hardly be considered a "dirty
record" before the October elections.
Politics
06
Special Court: Prerogative or Privilege?

8. 07
Since the Supreme Court decision, some cases have already been referred to the first instance,
applying the decision as a paradigm, but it is not yet possible to know whether the consequences
will be positive or negative.
The prerogative jurisdiction is necessary for the maintenance of the Democratic State of Law and
the solidity of the institutions themselves. However, the exaggerated privilege creates a situation
of dangerous political games and, even more worryingly, corruption among the powers. Finding a
balance, however, is not easy and the real consequences of the Supreme's decision, we will know
only with concrete cases.
Luciana Lemgruber
Politics
The crisis in Argentina and the possible
repercussions in Brazilian territory: the
phantom of international dependence
Argentina's President Mauricio Macri made an announcement in early May disclosing the financial
aid requested for the managing director of the International Monetary Fund (IMF). The currency
crisis that the country is experiencing, in an international context of high interest rates and
strong pressure on the currencies of emerging economies, has not helped in the battle for
financial stability waged by Macri.
The relationship between the IMF and Argentina is not the best, since 2006 Argentina turned
away from the IMF, when Néstor Kirchner managed to pay off one of the country's debts to the
institution, choice of highly political nature, since, for the Argentine population, engagement with
IMF refers to hard economic adjustments reflected in the daily life of the country.
For Kirchnerism, the distancing and criticism to the IMF was a banner, even though it never
really left the institution, a tendency accompanied by many Latin American governments. As an
alternative, the state was financed by issuing domestic debt in national currency, which justifies
the current fiscal and external deficits that Macri must manage, which is also reflected in the
currency crisis.
Argentina has an economy that is extremely sensitive to external phenomena, which over the last
few years has been fed disproportionately by public spending. Moreover, to complete the
negative scenario, the confidence of the Argentine market has been declining internationally,
even with the cuts and orthodox measures adopted by the president.
International Relations

9. International Relations
08
It is questioned, then, how the Argentine crisis and its request of aid for the IMF can influence
Brazil. According to experts, the most evident and immediate consequence is the reduction of
Brazilian exports of cars and auto parts to Argentina, the main target market for the vehicle
sector, thanks to the tax exemptions negotiated within Mercosur. Former Secretary of Foreign
Trade, Welber Barral, recalled that Argentina is the main importer of manufactured products in
Brazil. According to him, IMF support will reduce exchange rate speculation in the country,
helping to maintain imports, and the consequences for Brazil will not expand beyond the
automotive sector, since the country's macroeconomic situation is favorable.
Another optimistic actor is the Brazilian Finance Minister, Eduardo Guardia, who said there was
no channel of contagion of the Brazilian economy with the Argentine situation. According to the
Minister, Brazil's high international reserves and the low external deficit protect Brazil from
possible negative impacts. Banco Bradesco's economists echo the view that Brazil runs low risks
with the neighbor's crisis, highlighting the differences in the economic structure of the countries.
Some experts draw a parallel between the current scenario of Argentina and Brazil between 2013
and 2015, when the Brazilian fiscal situation worsened along with an increase in external deficits.
The lesson that can be learned from the bad days Argentina is going through is that a healthy
macroeconomic scenario is an imperative for economies in developing countries that must deal
with situations of great external dependence, otherwise who will suffer the consequences of the
international volatility is the population from these nations.
Nara Andrade

10. Economic Data
09
MONTH DOLAR
IPCA
(accumulated
12 months)
SELIC IBOVESPA
PROJECTION PIB
2018
AUG.2017 3,14 2,46% 9,15% 70.727,08 0,39%
SEP.2017 3,17 2,54% 7% 73.626 0,68%
OCT.2017 3,26 3,08% 7% 73.323 0,73%
NOV.2017 3,27 3,08% 7% 71.971 0,73%
DEC. 2017 3,31 2,79% 6,9% 75.996,68 0,98%
JAN. 2018 3,17 3,95% 6,75% 85.329,20 2,66%
FEB.2018 3,33 2,68% 6,50% 82.956,10 2,89%
MAR.2018 3,33 2,68% 6,50% 82.956,10 2,89%
APR.2018 3,46 2,76% 6,25% 86.127,86 2,75%
MAY.2018 3,71 * 6,50% 76.774,24 2,37%
* Pending
Source: Boletim Focus/Banco Central

11. Events Calendar
10
SUN MON TUE WED THU FRI SAT
27 28 29 30 31 1 2
3 4 5 6 7 8 9
10 11 12 13 14 15 16
ANATEL Board of
Directors Meeting
Local: Distrito
Federal, Brazil
Ordinary Meeting
of the Board of
ANVISA
Local: Distrito
Federal, Brazil
CONITEC meeting
Local: Distrito Federal, Brazil
Ordinary Meeting
of the Board of
ANVISA
Local: Distrito
Federal, Brazil
306th Ordinary Meeting of the National Health
Council – CNS
Local: Distrito Federal, Brazil
Meeting of the
Sectorial Chamber
of the Cocoa
Productive Chain
Local: Distrito
Federal, Brazil
40th Week of Citruculture
Local: São Paulo, Brazil
Meeting of the
Sectorial Chamber
of the Cocoa
Productive Chain
Local: Distrito
Federal, Brazil
FEINACOOP – National Fair of Agribusiness, Bioenergy and Cooperatives
Local: São Paulo, Brazil
Judiciary and Rare
Diseases
Local: Distrito
Federal, Brazil
Bahia Farm Show
Local: Bahia, Brazil
Negotiations’ round of the Agreement between Mercosur and European Union
Local: Montevideo, Uruguay
Briefing about the Mercosul-Canada Agreement
Local: Distrito Federal, Brazil
Seminar
“Mercosul-Pacific
Alliance:
Reinforcing the
vectors of
integration”
Local: Distrito
Federal, Brazil
CEPLAC meeting
Local: Distrito
Federal, Brazil
Seminar “Export
Processing Zones:
Investment
Opportunities for
Agribusiness in
Piauí”
Local: Piaui, Brazil

12. Events Calendar
11
SUN MON TUE WED THU FRI SAT
17 18 19 20 21 22 23
24 25 26 27 28 29 30
Internal Ordinary
Meeting of the
Board of ANVISA
Local: Distrito
Federal, Brazil
134th Regular Meeting of the Board of Directors
of CNS
Local: Distrito Federal, Brazil
ANATEL Board of
Directors Meeting
Local: Distrito
Federal, Brazil
Ordinary Meeting
of the Board of
ANVISA
Local: Distrito
Federal, Brazil
SAITEX 2018
Local: Johannesburg, South Africa
Iran Agro Food 2018
Local: Tehran, Iran
CONASQ meeting
Local: Distrito Federal, Brazil
Stockholm
Convention WG
meeting
Local: Distrito
Federal, Brazil
Meeting of the
Sectoral Chamber
of the Citrus
Productive Chain
Local: Paraná, Brazil
5th Meeting of the
Subcommittee on
Industry and
Information
Technology of the
Brazilian Sino-
Brazilian
Concertation and
Cooperation
Commission
(COSBAN)
Local: Distrito
Federal, Brazil
Seminar “Social,
Political and
Economic Impact
of Fake News”
Local: Distrito
Federal, Brazil